In Brief
In this criminal appeal, the Supreme Court clarified that an authorized signatory of a company cannot be treated as the 'drawer' of a cheque for purposes of the Negotiable Instruments Act, 1881. The appellant, while authorized to sign cheques on behalf of his company, faced orders to deposit 20% of fines as a condition for suspending his sentence in cheque dishonour cases under Section 138. The Court held that such deposit conditions cannot be mechanically imposed on authorized signatories, as the legal status of drawer belongs to the company itself. The primary liability for cheque dishonour rests with the company, not its officers merely because they signed the cheques. The Court allowed the appeals and quashed the deposit requirements.
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